Fitch rates Odebrecht notes BBB

Fitch Ratings said it assigned a BBB rating to Odebrecht Finance Ltd.'s $500 million proposed senior unsecured notes due 2029, which will be unconditionally and irrevocably guaranteed by Construtora Norberto Odebrecht SA.

Net proceeds will be used on a tender offer for the 2020, 2022 and 2023 notes.

Fitch currently rates Odebrecht with a foreign currency issuer default rating of BBB and Construtora Norberto with foreign and local currency issuer default ratings of BBB.

Fitch said Construtora Norberto’s investment-grade rating reflects its conservative financial profile, good and consistent track record of operations and its leading position in the engineering and construction sector in Latin America.

The ratings also incorporate the company's margin resilience, as demonstrated during the last quarters, within an operating environment of increasing costs. Construtora Norberto has also been successful in raising funds to lengthen its comfortable debt amortization profile.

Fitch said it expects that Construtora Norberto will continue to maintain a conservative capital structure and strong liquidity for the next few years.

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